Property Brief - January 2024

In the latest edition of Property Brief, Q3 2023 saw a marginal increase in home loan applications, followed by a predictable drop between Oct and Dec, traditionally a quieter time for homebuying. At an index value of 233, this key indicator of conditions in the property market dipped by 7.5% QOQ and 12.5% YOY. The Consumer Price Index is creeping closer to the mid-point of the Reserve Bank target range (3-6%), so lower interest rates should be on the cards. This could lead to the next upward phase of home loan applications.

After solid growth in average home purchase prices between 2019 and 2021, the growth trajectory has flattened slightly, especially for first-time buyers. This was a result of the Reserve Bank’s restrictive monetary policy stance, starting in Nov 2021, which saw interest rates rising to their highest levels in 14 years, dealing a blow to homebuyers’ affordability. Against a backdrop of limited housing stock, average home purchase prices have nevertheless kept pace with inflation, recording a 5.5% YOY increase in 2023.

Between 2019 and 2021, average home purchase prices recorded significant growth, especially for the youngest age group (21-30), which is predominantly comprised of first-time buyers. For this group, the growth in average home purchase price was almost 30% in the space of only two years. For the oldest age group (51-60), growth was at 18%, also a strong increase. Between 2021 and 2023, the tables have turned. The growth in average home purchase price for the 51-60 age group managed to outpace inflation, at just under 10%, while there was an increase of only 1.7% for the youngest age group. For the full edition of the January Property Brief, click on the link below.

All the editions of the Property Brief are available here for your reading pleasure.